How does a FHA loan Compare to a Conventional Loan?
Conventional loans usually require a larger down payment. And, if you have less than perfect credit you may not qualify for many conventional loans and find yourself being offered loans with higher interest rates and/or fees than you expected. The best thing to do is compare the cost of the conventional loan to an FHA loan line-by-line. What are the fees on each? What is the interest rate? How much is the mortgage insurance on each? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, it will be more expensive than FHA.
VA Loans do not require you to pay Private Mortgage Insurance (PMI). This means if your home costs $175,000, a VA Loan could save you $8,000 over a five-year loan period. With a conventional loan, this $8,000 would be an out-of-pocket expense.
VA Loans require no money down and you will see no penalty rates. If you don’t have 10% down, you can still qualify for a VA Loan, but might not qualify for a conventional loan.
VA Loans have lower rates than conventional loans. This is true no matter if your credit score is less than 700 or if you have an Excellent credit rating and 20% down.
Due to the sheer number of benefits you can get with a VA Loan compared to a conventional loan, you may think a VA Loan is harder to get than it really is. VA Mortgage Center.com specializes only in VA Loans and has streamlined the VA Loan process to make it as simple and easy as possible for you.
VA Mortgage Center.com specializes in VA Loans. Our experience and expertise allow us to provide you with all of the help and information you need during the VA Loan process. Make the most of your benefits by allowing us to start helping you today!